Exceptions To Law of Demand Assignment Help

Exceptions To Law of Demand

The law of demand states that price-demand relationship is inverse i.e. with a rise in price quantity demanded of a good declines and a fall in prices causes increase in quantity demanded of that good. This is what we call a normal price- demand relationship. However, in some cases, or at some times, this relationship may not work in the expected direction i.e. the quantity demanded may not decline with the rise in price, or it may even increase when the price rise. Similarly, a fall in price may lead to reduction in quantity demanded- a position which is contrary to the law of demand. Such price-demand behavior, which does not follow the expected inverse relationship, is not a norm, but an exception to the law of demand.